With the health of the fragile economy hanging in the balance and financial markets watching closely, the leaders said they would present the compromise to their caucuses on Monday in hopes of enacting it before a Tuesday deadline to avert default. … The tentative agreement calls for at least $2.4 trillion in spending cuts over 10 years, a new Congressional committee to recommend a deficit-reduction proposal by Thanksgiving, and a two-step increase in the debt ceiling. … They said the debt limit would be increased by $900 billion in the first installment, subject to a Congressional vote of disapproval that Mr. Obama would be able to veto. To prevent a default, $400 billion would be added immediately. – NY Times
Dominant Social Theme: Everything will be OK. Nothing to see here folks … the storm has passed and your wise leaders have saved the day.
Free-Market Analysis: All along we have been saying that the semantics and hype surrounding the debt ceiling debate would be for not and that "business as usual" would prevail. This celebratory piece, published by the NY Times on Sunday (excerpted above), is just the kind of propaganda that confuses the public into actually believing that something meaningful has been accomplished and that the US economy will now improve and their living standards along with it.
Mainstream media have long been aiding and abetting Money Power and their deceitful game of monetary manipulation – one that has been hollowing out the American economy and blowing cannon-size holes through the US Constitution. So it comes as now surprise, that here on the virtual eve of the debt ceiling vote in the House of Representatives, that the NY Times brings the "people" a message of false hope.
Well, sorry to burst the party balloons, but we just don't see this as anything other than a continuation of the same. There is no "cure" here. The "plan" is not going to solve anything because it DOESN'T ADDRESS THE REAL PROBLEM.
The real problem has to do with a faulty currency that is unrestrained because it is inflatable at the will of politicians and central bankers. And people have been conditioned to believe that there are others out there who can do a better job of looking out for their needs than themselves.
So it is that people continue to sacrifice more and more of their freedoms to the dream peddlers. They grant them free license to inflate an unrestrained fiat currency that has been hijacked over time. And mainstream media publications, like the NY Times, are ever ready to do their part to make sure a glossy coat of wordsmithing provides cover to the process.
The "wise leaders" would like everyone to believe that money is evil and that in order to protect society against the ravages of the free-market, a central bank must oversee the process of money creation and monetary policy, albeit with government supervision. And it is the belief by many in this misguided premise that has enabled the greatest heist the world has ever seen to be carried out, courtesy of the "wise leaders" and their structural edifices.
Here is what Anthony Wile wrote in an editorial we published on Saturday:
"Anyone who thinks that money is evil should think again. It is evil that has taken control of the issuance of money. But money itself, as determined by the free market over thousands of years, is far from evil – it is necessary for the advancement of a specialized society where an increasing division of labour allows for the creation of ever more useful products and services to allow humans to maximize their time and improve living standards. The reverse is what we have now. You are being forced to work half your life for the "system." Is that not an encroachment? …
"The system is rotten and thoroughly unfair. The Fed hands out trillions in bailouts – none of which loosens the pressure of your noose. Barack Obama and his puppet administration threaten more fear to cutoff the social security checks to seniors, amongst other threats, if the debt ceiling isn't raised yet again. Can't you just see all of those unfortunate seniors squirming as they realize their lives have been stolen and the footboards are starting to creak?
It is very very sad that Amercia has come to this point – it is broke. It to be more blunt, it was broken on purpose so that a global new world order can be hoisted – an international gallows, if you will."
You can read the full editorial here: As America Continues to Tank, What Will You Do?
Without addressing the base of the problem itself, which is the unrestrained ability for the fiat-dollar to be devalued by central bankers, thus taxing the purchasing power of all existing currency in circulation, there will be no fix. You cannot cure a system that is built on a faulty base. And the US dollar is – a faulty currency.
But Western mainstream media and the "wise leaders" are going to try to promote this last-minute "solution" as "the fix." It is nothing of the sort and the alternative media will surely not help the mainstream "sales process." But they'll try anyway.
Let's take a closer look at "the plan." Here's what the NY Times article reported:
The tentative agreement calls for at least $2.4 trillion in spending cuts over 10 years, a new Congressional committee to recommend a deficit-reduction proposal by Thanksgiving, and a two-step increase in the debt ceiling.
… They said the debt limit would be increased by $900 billion in the first installment, subject to a Congressional vote of disapproval that Mr. Obama would be able to veto. To prevent a default, $400 billion would be added immediately.
A second increase of $1.2 trillion to $1.5 trillion would be available subject to a second vote of disapproval by Congress. At the same time, a new joint Congressional committee would be created to find cuts roughly matching the increase in the debt limit.
OK, there you have it. Americans are going to get yet another new Congressional committee that will take a supposed bipartisan approach to determining how to implement "yet-to-be-determined" spending cuts totaling $2.4 trillion over TEN YEARS – while the current debt ceiling is raised to a cool $17 trillion. More debt today against promised cuts tomorrow. And, to show how prudent the "wise leaders" are, they are going to raise the debt ceiling in two tranches – rather than spend it all in one shot. But if the House doesn't approve the plan; Obama's moving forward anyway. Sound good to you dear reader?
How in good conscience could anyone actually support such a plan? What ever happened to the US Constitution and its ability to protect the people from big government and its expansion into an authoritarian State?
The truth of the matter, as we see it, is that the debt ceiling will be raised – or as Peter Schiff refers to it, the "debt target" – and the Federal Reserve will go about monetizing another couple of trillion and devaluing the purchasing power of the US dollar. Jobs will not be created, the real economy will not grow and another chance to actually address America's monetary problems will pass by. Inevitably, the system, as any PONZI scheme, will collapse and the fiancial hurricane approaching America's shores will be even more devastating.
The US government has expanded the national debt by a whopping ELEVEN (11) TRILLION DOLLARS over the past TEN YEARS. And that doesn't include the entitlement obligations on top of that figure, which IS MUCH MORE.
According to Congressman Ron Paul, "The debt is unsustainable. This year alone it is said we have a debt increase of $1.6 trillion, but that's not true. If you count what we borrow from the pension funds, the social security and highway funds, it's $2 trilion dollars. But if you include the increase in the entitlement obligations, it's $5 trillion dollars."
You can watch Dr. Paul's full speech to the House here: Ron Paul: If Debt Is the Problem, Why Do You Want More of It?
The bottom line folks, is that this "plan" is no plan at all. It doesn't call for serious spending cuts. It doesn't call for a balanced budget and a serious attempt at making structural changes so that America can live within its means. It does nothing of the sort. All it does is put lipstick on dying pig.
You cannot sober up a drunk by pouring more liquor down his throat. You cannot solve the debt crisis in America, and the West in general, by continuing to go down a path of certain destruction by creating more of what is causing the problem in the first place – fiat-money debt. The amount of spending cuts "promised" over a 10-year period amount to a drop in the bucket when compared with the amount of new debt that's been created just this year alone! Not to mention the $11 trillion that's been created over the past 10 years.
Earlier today, we posted a video clip from Judge Andrew Napolitano's FreedomWatch program where he delivered an on-air plea to Speaker of the House, John Boehner. In his address, Napolitano said the following:
"After President George W. Bush grew the US debt by seven trillion dollars in eight years in office and President Obama added four trillion in just two years in office, the people cried out against Big-Government policies that are sabatoging the economy and taking over our lives. And because they cried out, you are no longer just John Boehner from Ohio, you are now the second in line to succeed to the presidency. You are the Speaker for the House of Representatives. Mr. Speaker … Americans do not want to see the debt ceiling raised. They are sick and tired of paying interest on borrowed money, money borrowed in their name."
So what has been the reaction of Mr. Boehner? According to the Times article:
"Our framework is now on the table that will end this crisis in a manner that meets our principles of smaller government," said Mr. Boehner, who said he hoped to get the legislation onto the House floor as quickly as possible.
You've got to be kidding, right? No. Mr. Boehner isn't kidding. He believes this "plan" is going to "end the crisis," or at least that's what he says. His statement is simply ridiculous. Boehner should have listened to the Judge. (You watch Judge Napolitano's FreedomWatch clip here: Judge Napolitano: An Open Letter To John Boehner – Stand Up for The People!)
As stated above, the plan is no plan at all. People are awakening to the deceitful nature of the US monetary system and how it has been systematicaly devaluing their purchasing power ever since the Federal Reserve was established in 1913. People are making changes – and fast. The US dollar has been devalued some 50% in the last three years alone against gold and will likely continue to devalue at an even faster rate.
The Quote of the Decade? (Submitted by a Daily Bell feedbacker earlier today.)
'The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.' – Senator Barack H. Obama, March 2006
Debt Ceiling Update: This evening, at 6 PM CET, Russia Today's Kevin Owen conducted a live television interview with Anthony Wile, founder and chief editor of thedailybell.com, about Washington's latest deal to raise the US debt ceiling and avert a potentially devastating default. Click here to watch now.
The US dollar is in serious danger of a total collapse. Hyperinflation is a pending reality as the Internet Reformation continues to awaken millions of people from their dreamtime slumber. It is clear that the entire monetary system needs a complete overhaul and central banks and their destructive game of wealth redistribution needs to be stopped. There are many good people like Ron Paul, Lew Rockwell, Judge Napolitano, Jim Rogers and Peter Schiff, just to name a few, who have been trying for years to get the message across that something needs to change or America will find itself in embroiled in civil chaos. But it is obvious that today's elected officals are going to do nothing to change it. Just more jaw-jaw. It truly is time for people to take matters into their own hands by seeking solutions that can protect them and their families.